Pension growth after leaving RM

[freespeech]

Apologies for yet another question from me but I'm sure you can appreciate leaving a paid job to retire is a massive decision.

I may have an option of VR and could take you pension straight away aged 55. However, if I left the business and then took the pension at 56 am I right in thinking the potential difference would be at least 5% improvement in both NRA60 and 65 (as taking it a year later) but that I would also get the annual increase factored in? I assume that isn't any different to getting it whilst taking the pension (although it will increase the overall pot and therefore increase the lump sum potential).

I suppose the question really is BASED ON HAVING LEFT THE BUSINESS, is there any disadvantage in taking my pension later rather than on leaving?

[RobertT]

If you leave it until 56 you obviously won't give up as much in early payment reductions, meaning more in your pocket when you do take it.
The argument for taking it early is you're getting less but for longer. But generally speaking and based on averages, the later you do take it, the more you'll receive overall.
Ultimately that's a decision for the individual, but never defer after NRA!

The annual increases before you take your pension are added on 31st March each year(or is it 1st April?), so leaving it a year will also mean a bigger payout on that front.

The increases for pensions in payment will depend on which section you're in. A/B increases by CPI and C by RPI.

If you get VR, I would have thought the logical thing to do was to live on that money for an X amount of time and then take your pension closer to NRA.
If you were to do that, your deferred benefits would increase by CPI regardless of the section you're in.

The rate the DBCBS increases can vary from 0% to 4% above CPI and is set by RM.

As with all things to do with RM pensions, it's not an easy yes or no!

[freespeech]

If you get VR, I would have thought the logical thing to do was to live on that money for an X amount of time and then take your pension closer to NRA.
If you were to do that, your deferred benefits would increase by CPI regardless of the section you're in.

That is the plan and you've confirmed there are no disadvantages to that approach......thanks again. You're a star.